NB: IF spouses are aliens national law governs.

ART.74-81, FC.

1. PROPERTY RELATIONS BETWEEN SPOUSES

A. WHAT SHALL GOVERN THEIR PROPERTY RELATIONS:

a) Marriage settlement ( if there is one )

a. NB.

> Written;
> signed by parties;
>executed before celebration of marriage.

Written to be enforceable between parties.

Enforceability against 3rd person depends if its registered
in LCR (where marriage contract is recorded) and Registry
of Property
IF party to MS is 18 but below 21 party whose consent is
necessary for marriage must be a party too to the MS.
IF party to MS is suffering from civil interdiction or any
disability guardian appointed by court must be a party to
MS.

b. Effect of Non-celebration of marriage.

Everything in MS is void
Donation propter nuptias in MS is void
Stipulations which do not depend upon the celebration of
marriage
(acknowledgment of paternity) shall remain valid.

b) IF MS is VOID /ABSENCE:

a. And M was celebrated before FC or before Aug. 3, 1988 CPG govern

b. And M was celebrated during FC or on Aug. 3, 1988 or thereafter
ACP govern.
EXC: If no liquidation of ACP or CPG judicial or extrajudicial
within 1 yr from death of deceased spouse CSP govern
the property relations of subsequent marriage of surviving
spouse, even if M is celebrated without MS.

B. LAW GOVERNING PROPERTY RELATIONS BETWEEN FILIPINO SPOUSES.

a) GR: PH Law govern their property relations (regardless of place of M celebration and
residence)

b) EXC: Properties outside PH law of country where it is situated (regardless issue is

intrinsic or extrinsic validity of contracts affecting the property.
 o If judicially declared void by Art. 44 donation by one in favor of the other is
revoked by operation of law.
ART. 82-87 FC
C. If marriage is Annulled:
2. DONATIONS PROPTER NUPTIAS
GR: Valid Donation
EXC: If donee acted in bad faith donation may be revoked by donor.
A. Requisites
NB: For donation to be revocable at the instance of donor in case done acted in
Made before marriage celebration bad faith there must be final judgment of annulment
Made in consideration of marriage HOWEVER IF marriage is Voidable due to lack of parental consent, donation
In favor of one or both of future spouses propter nuptias is revocable even if n judgment and none of the parties acted in
bad faith.

D. If legal separation decree is issued:

B. Formalities

If donated personalty exceeding more 5,000 donation and acceptance must be

written to be valid. GR: Valid Donation
If donated is realty donation and acceptance in public instrument. EXC: If Donee is the offending / guilty spouse donation may be revokedby donor.

C. Donation propter nuptias between future spouses:

As to Present Property
i. If regime agreed is ACP no limit on extent of donation
E. If resolutory condition is complied donation may be revoked by donor.
ii. If regime agreed is NOT ACP they cannot donate to each other more
F. If done commits acts of ingratitude (Art.765 NCC) donation may be revoked by donor.
than 1/5 of their present property - otherwise, excess is void.
iii. As to form donation must comply with art. 748 and 749.
4. DONATIONS DURING MARRIAGE:
As to future property
i. As to form in form of wills

NB: Donation of future property is allowed if it is in same
form of donation propter nuptias and donor is one of the
future spouses in favor of the other future spouse. donation
is treated as testamentary disposition governed by
testamentary succession and in form of wills
If donor is not future spouse- donation is invalid as per Art.
751 even if same is in form of donation propter nuptias.
GR: Every donation/grant of gratuitous advantage between spouses during
marriage VOID
o Donation of one of the spouses to children of other spouse by another
marriage ( donation to step-children ) or to persons of whom other
spouse is presumptive heir at time of donation PROHIBITED
because they constitute as indirect donation to other spouse.
EXC: Spouses may give each other moderate gifts on family rejoicing.
Extent of prohibition: applies also to persons living together as husband and
wife without valid marriage license.

3. EFFECT OF FF CIRCUMSTANCES UPON DONATION PROPTER NUPTIAS.

A. Non-celebration of marriage

GR: Donation is valid BUT may be revoked by donor.

EXC: If donation is made in MS = Void Donation

B. If marriage judicially declared void.

GR: Donation is valid BUT may be revoked by donor.

EXC:
o If judicially declared void due to non-compliance with Art. 40 and done spouse
contracted the marriage in bad faith donation is revoked by operation of law.
 Art. 88-104 void. Wife questioned validity of settlement due to her
objection in setting.
5. ABSOLUTE COMMUNITY OF PROPERTY (ACP) IN GENERAL
SC: - declared the amicable settlement void
RATIO: by agreeing to validity of sale, H
disposed of or waived his and wifes rights over the house
A. CONCEPT:
and lot and such disposal / waiver by H is not allowed by
H and W become a joint owners of all properties of marriage. Whatever property each law. ART. 124 FC requires that any disposition or
spouse brings into marriage and those acquired during marriage ( exc: art. 92 FC ) forms part of encumbrance of conjugal property must have written
common mass of couples properties. consent of other spouse, otherwise, it is void. Art. 89 FC
states also that no waiver of RISE of CPG during marriage
When couples marriage/community is dissolved common mass is divided between except in case of judicial separation of property.
spouses or respective heirs in proportion parties have established, regardless of value each one may
originally owned.

B. WHEN GOVERNING:

6. PROPERTIES INCLUDED AND EXCLUDED IN ACP:

i. Marriage under CC. / before Aug. 3.1988 ACP governs if stated in MS between
future spouses. A. Properties included:
ii. Marriage under FC / on Aug. 3, 1988 or after ACP governs IF
a. If stated in MS between future spouses or All properties owned by Spouses at time of celebration of
b. If no MS at celebration of marriage / MS is void. marriage / acquired during marriage (UNLESS, excluded in
MS or Art. 92 FC)

C. COMMENCEMENT: B. Properties excluded: (SEPARATE PROPERTIES)

At moment of celebration of marriage. Excluded in ACP in MS.

Any stipulation for commencement of ACP at other time is VOID. Acquired during marriage by gratuitous title by either
Spouses who reconcile after finality of legal separation decree may not adopt spouse + Fruits + Income
ACP as new regime notwithstanding Sec. 23 and 24(a) of New Rule on Legal
Separation. UNLESS: grantor expressly provides that it shall become a
part of ACP.

D. PPROHIBITED WAIVER: Acquired before marriage by either spouse who has

legitimate descendants by former marriage + fruits +
GR: No waiver of RISE (rights, interest, shares and effects) of ACP during income.
marriage. For Personal and Exclusive use of either spouse.
EXC: waiver takes place upon judicial separation of property
EXC: jewelry shall form part of ACP.

RATIONALE of the Rule:

o Prior liquidation of ACP, interest of each spouse in ACP is inchoate or

mere expectancy

(not ripen into title until it appears that there are assets in the ACP as
result of liquidation and settlement)

HAPITAN vs SPS LAGADILLA RTC and CA declared the

sale of conjugal property of sps. Null and void. Thereafter,
H entered into amicable settlement with other parties
recognizing validity of sale previously judicially declared
SUMMARY INCLUSION / EXCLUSION
 Antenuptial debts of either spouse chargeable to ACP if it
redounded to the benefit of family

Debts during marriage

o contracted by both spouses

Properties acquired BEFORE MARRIAGE Properties acquired DURING MARRIAGE. o contracted by one spouse with consent of the other
o contracted by one spouse without consent of other but
GR: INCLUDED in ACP GR: INCLUDED in ACP only to extent that it redounded to benefit of family.
o If contracted by administrator spouse for benefit of ACP
EXC: EXC:
Included in MS Acquired thru gratuitous titile +
Fruits +income (UNLESS grantor NB: Antenuptial debts / contracted by one spouse
For personal and exclusive use expressly provided that they are without consent of the other / contracted by administrator
(BUT jewelries are included in ACP) included in ACP spouse it must be proven by creditor party litigant
claiming it that it was contracted for benefit of ACP.
Acquired by either spouse with For general and exclusive use
legitimate descendants by former Taxes and Expenses
marriage + Fruits + income
o Taxes falling upon ACP
o Taxes falling upon separate property, if used by family
o Expenses incurred on ACP, (whether repair is minor or
not)
o Expenses on separate property IF:
Incurred during marriage
For mere preservation
Property used by family
o Expenses of spouse to complete professional / vocational
course / other activity for self-improvement
o Value promised or donated by both spouses in favor of
common legitimate children for completing professional /
vocational course / other activity for self-improvement
o Litigation expenses between spouses
EXC: groundless suits
7. OBLIGATIONS CHARGEABLE TO ACP: o Insufficiency / absence of exclusive property of debtor
spouse deemed as advances deducted from share of
debtor spouse upon liquidation of ACP, for the FF:
Antenuptial debt by either spouse non-
A. SUPPORT of: beneficial to family
Support of illegitimate children of either spouse
Spouses Liabilities incurred by either spouse by crime /
Common Children quadi-delict
Legitimate children of either spouse
NB: If ACP is insufficient to cover liabilities EXC no. 7 -
NB: BUT support of illegitimate children of either spouse is solidary liability of spouses for unpaid balance with
chargeable to exclusive property of illegitimate spouse present. separate properties
HOWEVER, if debtor spouse have no property / his exclusive
property is insufficient, ACP is required to advance payment to be
deducted from his share upon liquidation of community.

B. DEBTS AND OBLIGATIONS 8. OBLIGATIONS CHARGEABLE TO SEPARATE PROPERTY

 GR: Disposition / encumbrance of ACP must be with written consent
of other spouse or court authority.
a) Support of illegitimate children of either spouse
GR: No spouse may donate any ACP without consent of the other
(charge it to exclusive property of illegitimate parent)
EXC: moderate donations for charity / occasions of family rejoicing /
b) Liabilities incurred by crime / QD
family distress.
c) Goundless litigation expenses between spouses
d) Losses during marriage in game of chance / other gambling (lawful or not)
e) Debts contracted during marriage CONSIDERED AS CONTINUING OFFER:
a. By admin-spouse non-beneficial to ACP o Even if disposition / encumbrance is void transaction is
b. By 1 spouse without consent of the other non-beneficial to family deemed continuing offer by consenting spouse and 3rd
f) Antenuptial debts by either spouse non-beneficial to family person and may be perfected as binding contract upon
g) Taxes incurred on separate property not used by family acceptance by other spouse or court authorization before
h) Expenses incurred during marriage on separate property IF: offer is withdrawn by either or both offerors.
a. Not for preservation
b. Non-use by family of property Flores v Sps. Lindo

RTC: denied the creditor the right to

judicially foreclose mortgage CP
NB: for a/b/f ACP is to advance payment if debtor spouse does not have because it was made without consent
separate property / his property is insufficient to cover these obligations. of H. Wife signed the promissory note
and deed of real estate mortgage for
herself and in behalf of H. BUT SPA by
H was executed only 5 days later.

SC: While mortgage is void it is a

CONTINUING OFFER and subsequent
execution of SPA by H is acceptance
9. ADMINISTRATION AND DISPOSITION OF ACP by other spouse that perfected the
continuing offer as binding contract
making the real mortgage a valid
contract.
A. Administration
Theres no ratification of that void
GR: BOTH SPOUSES JOINTLY contract but what happens is that
EXC: Sole Admin Allowed there is meeting of the offer and
acceptance since the void transaction
o If 1 spouse is incapacitated / unable to participate in admin is deemed as continuing offer by
of common properties the other spouse may assume sole consenting spouse and 3rd person
power of admin without court approval resulting to perfecting a contract.
o If spouse without just cause abandons the other / non- Q: Applying Art. 493 NCC, since co-ownership
compliance of his obligations to family aggrieved spouse apply suppletory to ACP, may disposition by 1 spouse of ACP without
to petition government for sole administration. consent of the other be considered as valid only with respect to the
proportionate share of the spouse in ACP?
o During pendency of legal separation case court to
designate 1 spouse as sole administrator. A: NO! Its entirely a VOID TRANSACTION
because before liquidation of ACP, right of 1 spouse to of ACP is
inchoate until after dissolution and liquidation of ACP when there are
NB: POWER TO ADMIN DOES NOT INLCUDE POWER TO net profits left which may be divided between spouses.
DISPOSE OR ENCUMBER without court authority or written
consent of other spouse. Art. 493 NCC does not apply pending dissolution
and liquidation of ACP.

B. Sale / Disposition (inter vivos) of ACP: Consent not need to be explicit.

o Pelayo v Perez affixing of signature by W in deed of sale
in the space for witnesses
 = implied consent to the contract of sale.
Court authorization
o Rules of Summary judicial proceedings under FC govern
proceedings under art. 96 and 124 for obtaining court
authorization.
o Such Rules shall apply only when spouse is absent /
separated in fact / abandoned the other / consent withheld
or cannot be obtained.
o Such Rules does not apply if non-consenting spouse is
incapacitated / incompetent to give consent. REMEDY
Judicial Guardianship Proceedings under Rule 93 of ROC.
Disposition by Will
o Either spouse may dispose by will his share in ACP.
10. DISSOLUTION / TERMINATION OF ACP
A. Causes of dissolution / termination of ACP
Death of either spouse
o Mandatory requisite Surviving spouse must liquidate ACP
judicially or extrajudicially wihin 1 year from death of deceased
spouse.
o Non-compliance
Upon lapse of 1 yr + No liquidation =any disposition
or encumbrance of ACP shall be Void.
BUT in Heirs of Patricio Go Sr. and Marta Barola vs
Servacio SC held that sale of portion of CPG by
surviving spouse without prior liquidation required
by Art. 130 FV (counterpart of Art. 103 in CPG) is not
void if portion is not yet allocated by partition
(judicial or extrajudicial) to another heir of deceased
spouse. SALE IS VALID with respect to the ideal share
of selling co-owner / co-heir in the property is
concerned But without affecting ideal shares of the
co-owners.
If surviving spouse contracts subsequent marriage +
non-compliance w/ such requisite mandatory
regime of CS shall govern property relations of
subsequent marriage.
Finality of Decree of Legal Separation
o Rule on Separation in Fact
Does not affect ACP
o Effect of separation in fact:
Spouse who leave / abandon without just cause = no
right to support
o When consent of 1 spouse is required in transaction of the other
by law judicial authorization is obtained in summary
proceeding.
o If ACP insufficient spouse present may be given judicial
authorization, upon petition in a summary proceeding, for
admin or encumbrance of any specific property of other spouse
to satisfy latters share.
o If spouse abandons without just cause / non-compliance with
family obligations
aggrieved spouse may petition for receivership / for
authority to be sole admin of ACP.
o Presumption of Abandonment:
Leaving conjugal dwelling without any intent to
return
Leaving for 3 months / failed within 3 months to give
info as to his whereabouts shall be prima facie
presumed to have no intent to return.
Finality of judgment of Annulment
Finality of judgment declaring marriage void.
o NB: applicable only to marriages declared void for non-
compliance with Art.40 FC because this is the only void
marriage where ACP may exist.
Upon Judicial Separation of property during marriage (voluntary/for
acause)
11. PROCEDURE FOR LIQUIDATION OF ACP
a. INVENTORY - listing separately exclusive properties and properties of ACP
b. PAYMENT OF DEBTS AND OBLIGATIONS OF ACP
i. If ACP is insufficient spouses solidarily liable for unpaid balance
with their separate properties.
c. REMAINDER OF EXCLUSIVE PROPERTY delivered to each spouse.
d. Net remainder of properties of ACP = Net Assets
i. GR: Net assets shall be divided equally between the spouses
EXC: different proportion or division is agreed in MS / voluntary
waiver of such share.

NB: Net assets is different from net profits

Net Profits - subject to forfeiture under Art. 43 (2) and 63 (2) FC.

- An increase in value between MV of ACP at

time of celebration and at time of
dissolution.

- In ACP net profits is computed based on

ff procedure

Get MV of ACP at time of its

dissolution
Debts and Obli deducted
from MV of all ACP = net
assets (net reaminder of
properties in ACP)
Deduct MV of properties
at time of marriage = net
profits

Art. 105-133, FC
12. CONJUGAL PARTNERSHIP OF GAINS (CPG) Any stipulation for other time of
commencement is void.
Spouses who reconcile after finality of
decree of legal separation may not adopt
A. CPG (IN GENERAL) CPG as new regime notwithstanding Sec.
23 and 24(a) of Rule on Legal
CONCEPT: Separation.

i. H and W place in common fund the (PPFI) proceeds, Prohibited waiver:

profits, fruits and income from their separate properties
and those acquired by effort / by chance.

ii. Partnership provisions apply suppletorily. o GR: no waiver of (RISE) rights, interests, shares and
effects of CPG during marriage.
iii. Upon dissolution of marriage / CPG, net gains / benefits
obtained by either or both spouses shall be divided equally o EXC: Waiver upon judicial separation of property
UNLESS they agree to other in MS.
o RATIONALE:

Prior CPG liquidation, interest of each

spouse in C assets is Inchoate
(mere expectancy which does not ripen
When Governing : into title until it appears that there are
assets in community as after liquidation
i. IF marriage is celebrated under CC (prior to Aug. 3, 1988) and settlement)
- CPG GOVERNS IF:
If provided in MS between spouses. Right of H / W to of C assets does not
If no MS at time of celebration of marriage / if vest until dissolution and liquidation of C
MS is void. partnership / after dissolution of marriage
when there is already final determination
that net assets left can be divided between
spouses / heirs.
ii. If marriage is celebrated during FC without MS (on
Aug. 3, 1988 or thereafter) and CPG govern if it is stated in
MS.
13. PROPERTIES INCLUDED AND EXCLUDED IN CPG.
Q: If spouses were married under CC without MS in which
A. Properties Excluded (separate properties):
case CPG governs, can it be said that such CPG is converted
to ACP when FC took effect pursuant to FC transitory
provisions since no vested rights are impaired? GR: Properties acquired PRIOR marriage.

A: In Pana v Heirs of Jose Juanite, Sr. SC did not agree with o EXC:
RTC and CA. SC ruled that Art 256 FC does not intend to Fruits + Income of separate properties,
retroact and automatically CPG that existed before 1988 included in CPG, but only net fruits shall
into ACP excepting only those prenuptial agreements. be included.
Those included in MS, except 1/5
limitation under art. 148 FC and Rule in
art. 92(3) FC, apply by analogy.

Properties acquired DURING marriage by GRATUITOUS TITLE:

NB:
Property donated / left by will to
Commencement: spouses jointly and with designation
of determinate shares pertains
o At celebration of marriage only to Donee-spouse as his
exclusive property
 If without designation share
equally (without prejudice to right
of accretion)
If retirement benefits, pensions,
annuities, gratuities, usufructs and
similar benefits are obtained out of
pure liberality of donor benefit is
Separate Property of grantee
spouse.
- If such is only
accumulation / deduction from
money earned during marriage or
from salaries of either spouse, then
such benefit becomes CPG.
Properties acquired by redemption right / barter / exchange with
property belonging to only 1 of spouses.
Properties purchased with exclusive money.
- IMPORTANT is that acquisition Is made DURING
MARRIAGE.
NB:
Proof of acquisition of property
during marriage is CONDITION SINE
QUA NON for operation of
Conjugality presumption.
Not needed to prove that it is
acquired with CP funds. superfluity.
Presumption refers only to property
acquired during marriage and does
not operate when no allegation when
such property is acquired.
- If no showing as to when
property was acquired presumption
cannot prevail when title is in the
name of 1 spouse and rights of
innocent 3rd parties are involved.

- if property is registered
in name of 1 spouse w/ description
that he is married to other spouse
merely descriptive of civil status of
registered owner.

- registration of property
in name of 1 spouse does not negate
B. PROPERTIES INCLUDED:
possibility of it being C / ACP, if
theres proof that properties tho
Properties acquired by ONEROUS TITLE DURING MARRIAGE at
registered in name of 1 spouse were
expense of common fund.
indeed either conjugal/ACP.
o Requisites
1. Acquired during marriage
2. Thru onerous title Even if acquired during marriage,
3. At expense of common fund conjugality presumption cannot be
applied to private lands if 1 of
o GR: Presumption of Conjugality: spouses is Alien because it violates
the 1987 Constitution prohibiting
- all properties acquired during marriage is presumed aliens from acquiring private lands in
conjugal (regardless if registered / contracted in name of PH.
1 spouse only or both)
o EXC: Property acquired thru redemption right
EXC: contrary if proved
if redemption comes from C funds it
shall still separate property of spouse who
- Presumption is not rebutted by mere fact that cert. of title have redemption right subject to
of property / Tax Dec. in in name of 1 spouses only / reimbursement.
registration of trade name is in name of W alone / credit is
loaned during marriage by 1 spouse only.
Property acquired during marriage from labor (industry, work,
profession) of either / both spouses
 o If cost of improvement and any which increase value more
Fruits from CP and net fruits from separate properties. than value at time time of improvement CPG

Net fruits remainder of fruits after deducting
deducting administration expenses of exclusive
property.
o Principal and interest payable in instalments: if
credit is payable within period of time and belong to
1 spouse only:
Instalment on principal exlusive
property
Interest on principal due during marriage
CP
o If less than, - owner spouse.
o In both case reimbursement upon liquidation of CPG
ownership vest only upon reimbursement
NB: reimbursement obligation for cost of improvements
(art. 120 FC) rests on spouse to whom ownership of entire
property is vested no obligation of purchaser if such is
sold by owner spouse prior reimbursement.

Hidden Treasure Share & Acquired thru fishing / hunting

Acquired thru chance (gambling)

o Losses borne by loser spouse.

Livestock existing at time of dissolution of CPG (in excess of

number of each kind brought marriage by either spouse)

C. Properties brought thru instalment

Requisite
o Brought in instalment before marriage
o Payment completed during marriage
o Paid from exclusive funds and partly from C funds.

Rules in determining ownership.

o If full ownership vested before marriage exclusive
property of spouse
o If full ownership vested during marriage CPG
o In either case reimbursement upon liquidation of CPG.

D. Improvement on Separate property.

Requisites

o Improvement made in exclusive property of 1 spouse

o Improved during marriage
o At expense of CP / thru acts or efforts of either or both
spouses.

Rules in determining ownership:

SUMMARY OF INCLUSION/INCLUSION
PROPERTIES ACQUIRED BEFORE MARRIAGE
GR:
Not included in CPG
- But fruits and income of such
properties accruing during marriage
included in CPG.
EXC:
When included in CPG in MS subject
to ff limits:
- not exceeding more than 1/5 of
present property
- not to include those acquired
before marriage IF either of future
spouses has legitimate descendants
in former marriage
PROPERTIES ACQUIRED DURING MARRAIGE
If acquired thru Gratuitous title
not included in CPG
If acquired thru onerous title and
- used exclusive money, exclusive
property
- used C funds,
GR : included in CPG
EXC: if acquired thru redemption
right it belong to spouse who have
right to redeem regardless of source
of funds used to redeem.
If right pertains to 1 spouse only
exclusive property even if C funds
used on acquisition. CPG
reimbursed upon liquidation
14. OBLIGATIONS CHARGEABLE TO CPG:
A. Support of:
Spouses
Common children
Legitimate children of either spouse
B. Debts & Obligations
Anteuptial debts of either spouse If it redounded to benefit of family.
During marriage debts
i. If contracted by both spouses
ii. If contracted by 1 spouses w/consent of other.
iii. If contracted by 1 spouses without consent of other but
only to the extent that they have redounded to benefit of
family.
iv. If contracted by Admin-Spouse for benefit of CPG
-
NB: Personal debts contracted by
either spouse without consent of
other spouse
RULES:
- If contracted for benefit
of CPG / family debt chargeable to
CPG.
- if not charge against
exclusive property of debtor spouse.
PRESUMPTION:
 -if either spouse contracts obligation for family business its presumed that it
redounds to CP benefit.
- thus, if H is principal debtor in contract its an obligation that is
deemed for benefit of CPG
15. OBLIGATIONS CHARGEBALE TO SEPARATE PROPERTY
A. Support of illegitimate children of either spouse
B. liabilities incurred by reason of crime / QD

- If funds was given to another person / entity and H acted only as C. litigation expenses between spouses (groundless)
surety or guarantor not an obligation for benefit of CPG its for benefit of
principal debtor not for surety or its family. D. losses during marriage in game of chance (gambling legal or not)

E. debts contracted during marriage:

C. Taxes & Expenses. By admin-spouse non- beneficial to CPG

By 1 spouse without consent of other spouse non-beneficial to
T falling upon CPG property & those falling upon separate property family.
E incurred on CPG (regardless repair is major / minor)
F. Antenuptial debts by either spouse non-beneficial to family
E incurred in separate property if:
i. Incurred during marriage G. Expenses During marriage on separate property if not for preservation.
ii. For mere preservation
E for completion of spouse to complete course
(professional/vocational / other activity for self-improvement)
Value donated or promised by both spouses in favor of common NB: for A/B/F can be enforced against CPG IF:
legitimate children for exclusive purpose of completing course
(professional/vocational / other activity for self-improvement) Spouse bound has no exclusive
E of litigation between spouses properties / insufficient
i. EXC: groundless suit Responsibilities of CP in art. 121 FC is
already covered, subject to
NB: IF CPG is insufficient spouses solidarily liable for reimbursement upon liquidation of
unpaid balance with their separate properties CPG

NB: Absence/Insufficiency of Separate property of debtor spouse, foregoing

liabilities can be enforced against assets of CPG provided responsibilities of CPG
(art 121 FC) is already covered.

Art. 122 FC allows payment of criminal indemnities even before

liquidation of CPG as long as CP responsibilities in art. 121 is already covered.

SC: Not unfair since art 122 FC states that at time of liquidation of partnership,
such (offending sps.) shall be charged for what has been paid for that purpose.

16. ADMINISTRATION AND DISPOSITION OF CPG:

A. Administration
GR: BOTH SPOUSES JOINTLY
Disagreement Hs decision prevail subject to
recourse to court by W for proper remedy,
which must be availed within 5 years from date
of contract implementing the decision
NB: 5 yrs prescriptive period in art. 124 (1) FC
applies only where H decides in exercise of of
Admin powers of CP properties resulting to
disagreement between spouses.
Same does not apply in encumbrance /
disposition of CP property without consent of
other spouse. disposition is Void and action to
declare its nullity is imprescriptible.
EXC: Sole Admin Allowed
o If 1 spouse is incapacitated / unable to participate in admin
of common properties the other spouse may assume sole
power of admin without court approval
o If spouse without just cause abandons the other / non-
compliance of his obligations to family aggrieved spouse
to petition government for sole administration.
o During pendency of legal separation case court to
designate 1 spouse as sole administrator.
Rule under CC:
NB: POWER TO ADMIN DOES NOT INLCUDE POWER TO
DISPOSE OR ENCUMBER without court authority or written
consent of other spouse.
B. DISPOSITION / ENCUMBRANCE of CPG:
Governing law:
Entirely Void Contract:
o Rule under FC:
Written consent of other spouse / court
authority for disposition of CP property
otherwise it is void.
Under art. 124 FC, transaction executed without
authority of other sps. / court order is void.
ratification cant be made since void contract
cannot be ratified.
Even if other spouse actively participated in the
sale, written consent of other spouse is required
to be valid.
Ravina v Villa Arible:
SC: if sale is with knowledge but without
approval of wife (resulting to disagreement)
sale is annullable by wife who have 5 yrs from
date the contract implementing the decision of
H to institute the case.
SC applied 5 yrs prescriptive period in art. 124
(1) FC which application is misplaced because it
refers only to exercise of admin powers.
The remedy contemplated in art.124(1) FC is
not for annulment of contract but RECISSION,
which presuppose existence of valid contract
but prejudicial to family/CPG.
Art. 124 (2) FC states that admin power do not
include power to dispose / encumber CP
properties. It requires written consent of other
spouse to be valid, otherwise disposition is void
not merely annullable. As void, action /defense
based on its nullity is imprescriptible.
The right to institute action to declare it void is
not limited to non-consenting spouse but the
right is passed on to heirs.
o Disposition / encumbrance before FC /Aug 3, 1988.
- CC appies. Art 124 FC applies if disposition is made
during FC.
o Art 173 CC disposition of real property of CPG by H
without Ws consent is NOT VOID but merely VOIDABLE
and W could, during marriage and within 10 yrs from such
transaction, seek its annulment.
Felipe v Aldon Apply art 173 CC where W and land of CPG
without consent of H. Sale is ONLY VOIDABLE may be
annulled by H.
o Without the written consent of other spouse the sale is
VOID in entirety even the portion of spouse who made the
sale.
o RATIO:
Right of H / W to of CPG assets vest only after
liquidation / dissolution of CPG its already
determined that (after settling conjugal
obligations), net assets is sufficient which is
divisible between Sps. or heirs.
-prior thereto, interest of each spouse is only
inchoate. either cannot give what he has not.
Art. 493 of CC not applicable in CPG:
 Homeowners Savings & loan Bank v Dailo - In CPG net profits is computed based on
Rules on co-ownership, including art.493, do ff procedure
not apply to CPG because it is a special type of
partnership. Its the rule on partnership which Get MV of CPG at time of its
applies suppletorily and not co-ownership. dissolution
Debts and Obli deducted
from MV of all CPG = net
assets (net reaminder of
Buyer in Good faith: properties in CPG)
o Bautista v Silva, Ravina v. Villa Abrille, Aggabao v. Parulan Deduct MV of properties
at time of marriage = net
SC: to prove good faith in that situation buyers profits
must show that they inquired into title of seller
+ his capacity to sell
Buyers in good faith must exercise 2 requisite
diligence:
- Diligence in verifying validity of title
of property
- Diligence in inquiring in the
authority to sell CPG of transacting
spouse in behalf of other spouse.

17. DISSOLUTION / TERMINATION OF CPG.

18. PROCEDURE FOR LIQUIDATION OF ACP

a. INVENTORY - listing separately exclusive properties and properties of CPG

b. PAYMENT OF DEBTS AND OBLIGATIONS OF CPG

i. If CPG is insufficient spouses solidarily liable for unpaid balance
with their separate properties.

c. REMAINDER OF EXCLUSIVE PROPERTY delivered to each spouse.

d. Net remainder of properties of CPG = Net Assets

i. GR: Net assets shall be divided equally between the spouses

EXC: different proportion or division is agreed in MS / voluntary

waiver of such share.

NB: Net assets is different from net profits

Net Profits - subject to forfeiture under Art. 43 (2) and 63 (2) FC.

- An increase in value between MV of CPG at

time of celebration and at time of
dissolution.
 C. Revival of Previous Property regime.

Art. 134-146 FC Grounds for revival:

REGIME OF SEPARATION OF PROPERTY i. If voluntary SPS. may agree even without
reason. However, no voluntary separation may
thereafter be granted.
19. SEPARATION OF PROPERTY OF SPOUSES DURING MARRIAGE.
ii. If for Sufficient cause upon ceasing of ground
which is the basis for judicial separation.
- If judicial Separation is for sufficient
A. When Governing: cause Sps. may again petition for
judicial separation as long as there is
Express declaration in MS ground.

o NB: Procedure for revival: (same as to rules followed upon reconciliation

Spouses no longer allowed to adopt ACP /CGP during of sps. after finality of legal separation)
marriage because these 2 regimes only commence at
celebration of marriage.
Separation as to present/future property/both.
Separation may be total/partial properties not agreed as D. Transfer of Administration of Exclusive property to other spouse during
separate pertains to ACP marriage:

Judicial Order By Agreement

i. Upon finality of decree of legal separation
ii. Upon joint petition of sps. for voluntary separation (or i. Requisites:
without cause) 1. By public instrument
iii. Upon petition for judicial separation due to sufficient 2. Recorded in registry of property (where
cause. property is located)

Non-liquidation of surviving Sps. of ACP / CPG of previous marriage By Court Order upon petition, based on:
terminated by death within 1 yr required by law prior having o Other Sps. becomes guardian of other sps.
subsequent marriage. Subsequent marriage shall be governed by o Other sps. judicially declared absentee
Complete Separation. o Other sps. sentenced to penalty with civil
B. Judicial Separation for Sufficient Cause: interdiction.
o Other sps. fugitive from justice/ hiding as accused.
Grounds:
Automatic termination of Administration
i. Other sps. sentenced to penalty w/ civil interdiction o Alienation of exclusive property of sps. being
administered by the other - automatically terminates
ii. Other sps. judicially declared absentee administration over exclusive property ad proceeds
of alienation to be turned over to owner-spouse.
iii. Other sps. lost parental authority by court order.
iv. Abandonment of sps. / non-compliance with marital
obligation.

v. Admin Sps. in MS abused power.

vi. Separation in fact for atleast 1 year and reconciliation is

highly improbable.

NB: i/iii presentation of final judgment is enough for grant

of decree of judicial separation.
 Capacitated to marry each other
Live exclusively with each other as H and W
Art. 147-148 Union is without benefit of marriage/marriage is void.
PROPERTY REGIMES IN VOID MARRIAGES

NB: capacitated = legal capacity to contract marriage.

Art. 147 does not apply to cases of multiple alliances, even
20. Property Regime in Void Marriages.
if in relation to each union the parties are capacitated to
marry each other.
Even if they exclusively cohabit but parties are not
A. GR: In void marriage (regardless of cause) property relations of parties during capacitated to marry each other art. 147 FC does not
cohabitation is governed by art. 147/148 FC. apply.
In both prior situations art. 148 FC governs.
No ACP/CGP in void marriage. (at any point ever prior declaration of
nullity)

Rules on liquidation in ACP/CGP is irrelevant to liquidation of co- C. Sample of marriages under Art. 147 FC:
ownership under CC between common law sps./sps of void marriages.
Void marriages under art. 36 FC
In liquidation of properties of void marriages, Rule on co-ownership Marriages without valid marriage license
under CC govern and liquidation need not be in same proceeding for declaration
of nullity of marriage. D. Rule on distribution of properties:

EXC: If subsequent marriage is void by non-compliance of art. 40 FC BUT prior Wages & Salaries:
marriage is really void ab initio i. Those earned by either spouse during cohabitation
owned and divided equally even if 1 spouse earned wages
ACP/CPG govern the subsequent marriage. and other did not contribute thereto.
- UNLESS, parties agree to CSP in MS entered before marriage.
Property Acquired During Cohabitation:
- Rules to valid & Voidable marriages also applicable to this kind of i. Those acquired by both during union thru their work and
void marriage But only for determining property regime. industry are governed by Rules on co-ownership and
prima facie presumed obtained by their joint efforts
-Sec. 19(1) Am 02-11-10-SC which requires LPD of properties before
issuance of decree of nullity of marriage applies only to void marriage under
art.40 FC when rule mentions decree of absolute nullity and not void by art.36
Art. 147 FC create presumptions of:
FC.
o Acquisition thru joint efforts
-In void marriage, under art. 36 FC Art 147 FC applies as proper o Other spouse participation in
property regime and declaration of nullity can be made even without LPD of acquisition consisting of her care and
properties to parties since its not necessary to liquidate properties of spouses maintenance of family and
in same proceeding for declaration of nullity. household.
o Unlike in CPG fruits of couples
- In art 147 FC liquidation of properties owned in common is separate property are not included in
governed by Rules on co-ownership. co-ownership.

- in art 40 FC there is a need to LDP before decree of absolute nullity During cohabitation parties are prohibited
can be issued because property relations is governed by ACP / CPG. from disposing by acts inter vivos /
encumbering shares in co-owned property
without consent of other. (art. 493 NCC does not
apply)
21. Property Regime under art. 147 FC. o But after cohabitation art. 493
apply.
A. Applicability: Man and woman + without impediment to marry each other +
exclusively live together as H and W under void marriage / without benefit of MBTC v Pascual
marriage. o SC: Encumbrance of co-owned
property after termination of
B. Requisites: M and W must be: cohabitation (after final
 judgment declaring marriage
void under art. 36 FC) is valid as
to his share only applying art.
493 NCC.
Property acquired during cohabitation:
i. Only properties acquired by both parties through actual
joint contribution of MPI shall be owned by them in
common proportionate to their contributions.
ii. Mere cohabitation without proof of contribution will not
result to co-ownership.
iii. For equal contribution presumption to arise proof of
actual contribution is required.

Co-ownership is only up to proven actual contribution of

MPI.

If cohabitation is by void marriage and Fact that title of property is in name of parties to
only 1 parties acted in bad faith share of adulterous relationship is insufficient proof of co-
latter in co-ownership forfeited to ownership absent evidence of actual contribution in
(forfeiture takes place upon termination of acquisition of property.
cohabitation): Registration under torrens title system merely confirms
o Common children (if any) and does not vest title.
o In none, surviving descendants
of party in bad faith Words married to preceeding the name of a spouse
o If none, innocent party. merely descriptive of civil status of owner and does not
prove co-ownership under art. 148 FC.

If 1 party in cohabitation is validly married to another his share in co-

ownership shall accrue to ACP/CPG in such existing valid marriage.

22. Property Regime under Art. 148 FC. o Belcodero v CA property acquired by man while living w/common
law wife during subsistence of valid marriage is CPG even if its titled
in name of common law wife. constructive trust deemed created by
operation of art. 1456 of CC over property which pertains to CPG of
A. Applicability:
subsisting marriage.
Parties in union incapacitated to marry each other
If no valid marriage share of party in bad faith (1/both) shall be forfeited upon
Property regime of bigamous, adulterous, in state of concubine, each
termination of cohabitation in favor of:
parties are married to another, multiple alliances of same married
Common Children
man.
In none, surviving descendants of party I bad
faith
REQUISITES: M and W must:
If none, innocent party.
i. Incapacitated to marry each other/ do not live exclusively
with each other as H and W.
C. Not applicable to Same-sex marriage / cohabitation:
ii. Their union is without benefit of marriage/ marriage is
Governed by applicable provisions of CC on Property.
void

Retroactive application of Art. 148 FC:

i. Although adulterous cohabitation commenced before FC
Art. 148 FC applies because its intended to fill the hiatus
of Art. 144 CC. (because before art 148 theres no rule
governing property relations of parties in
adulterous/concubinage relation since art. 144 CC applies
only to those capacitated to marry each other.

B. Rule on Distribution of properties:

Wages and Salaries:

i. Earned by each party belong to him / her exclusively.